Perishable Areca Nuts Released Despite GST Irregularities | HC

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  • Last Updated on 23 December, 2025

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Areca nuts detention GST perishability

Case Details: Damroo Enterprise vs. State of West Bengal - [2025] 181 taxmann.com 490 (Calcutta)

Judiciary and Counsel Details

  • Om Narayan Rai, J.
  • Rajdeep Mazumder, Mayukh Mukherjee, Supriyo Dutta & Ms Sagnika Banerjee for the Petitioner.
  • Tanoy Chakraborty & Saptak Sanyal for the Respondent.

Facts of the Case

The petitioner, a trader engaged in the sale of areca nuts, challenged detention and penalty imposed on its consignment during interstate transit. It contended that the consignment was perishable, that multiple e-way bills and alleged discrepancies in consignor identity and invoices did not justify penalty. It was submitted that weighment evidence did not conclusively establish irregularity. The Department of Revenue maintained that e-way bills were generated 36 minutes apart for locations 266 km apart, the documents were dubious, the movement was continuous, and the penalty was justified. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that exceptional writ grounds were absent and factual disputes regarding penalty and document irregularities required appellate scrutiny under Section 107 of the CGST Act. The Court interpreted that Section 129 applied only where documents were genuine and could not protect dubious transactions. It concluded that penalty under Section 129(1)(b) was justified. Considering the perishability and short shelf life of the areca nuts, the Court directed the release of both goods and conveyance on payment and on furnishing a bank guarantee securing the balance, to be completed within three working days.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied